How can my friend get out of a really bad loan

[FicoPsycho]

A friend of mine purchase a truck with a whopping 21 Apr he got over excited at the time of purchase but now he realize he made a huge mistake. he bought the truck for about 18,000 but he is on pace to pay like 37k for it with interest. he obviously has a very poor fico score in the 500s. my question was if any body know a way he can get out of this loan in a positive way he has had the truck for like six month now ...............any advice will be greatly appreciated

[Anonymous]

IF he can find someone with much better credit to co-sign on a refi for him that would be a good way. If he still has poor scores unfortunately he would get a high rate. I think your friend should work on his scores and then try to refi on his own. Not many people are willing to co-sign, but it happens.

Recommend these boards and let him read all of the success stories like how people gained 100+ pts in a month, maybe that will give him motivation to clean up his reports. After the reports are cleaned he can refi on his own at a better much rate.

[FicoPsycho]

I am considering co-signing for him but cant bring my self to commit. i keep thinking if he has bad credit is for a reason and i fear he might bring me down the tube i dont know whats my best course of action here

[Anonymous]

In my humble opinion...Co-signing=bad news. Just my opinion.

[Anonymous]

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@FicoPsycho wrote:
I am considering co-signing for him but cant bring my self to commit. i keep thinking if he has bad credit is for a reason and i fear he might bring me down the tube i dont know whats my best course of action here

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I am not pro-co-signing. I am still fighting with FMC to get lates removed on a loana that I was primary signer on.

I told one of my relatives the other day, "how am I supposed to trust that you will care about my credit if you do not care about your own?" I never heard back from her.

I say he just have to ride it out. We all (on here) at some point have had to deal with sub-prime because of the mess we got ourselves into. Your friend should suck it up and try to work on his credit.

I was always there to bail my sister out of everything and when cut the cord only then did she understand the importance of getting her credit straight.

Her scores are almost higher than mine now.

[Anonymous]

Are they eligible to join a Credit Union....If he can get his scores up just a bit he could probably refi with one at a much lower rate.

[MattH]

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@FicoPsycho wrote:
I am considering co-signing for him but cant bring my self to commit. i keep thinking if he has bad credit is for a reason and i fear he might bring me down the tube i dont know whats my best course of action here

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You are right to be careful about co-signing, the worst case is you end up losing both money and friendship.

[Anonymous]

He can always...get his stuff together...improve his scores...and refi...don't co sign though...you are right...there is a reason for him having bad credit in the past...and if he's not even try to improve it...what do you think his future actions are going to be???...

I'm not putting the dude down...I myself...in 2006...bought a car...22% interest...I was 22 years old...with a 1 month old baby...needed a reliable car...but I got my stuff together...started working on my credit...realized I had both my father's bankruptcy...and judgment on my credit reports...I have improved a lot...I'm about to do a refi...with about 10%...not good...but not bad...

He can always refi...at a later date...and help himself...especially if he has a 60 month loan...or something like that...

[Anonymous]

In my humble opinion...Co-signing=bad news. Just my opinion

Just in case nobody read me....

[Anonymous]

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@Anonymous wrote:

In my humble opinion...Co-signing=bad news. Just my opinion

Just in case nobody read me....

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I've heard so many horror stories about one friend/relative co-signing for another ... then that dear friend/relative defaults and YOU'RE stuck with the default ding, lates, and the BALANCE, maybe even a judgment.

Personally, the best friends that I've had meant so much to me that I'd never even consider placing that valuable of a friendship in such jeopardy. T'ain't worth it (as my dear Mama used to always say).

Bottom line: If they're good enough friends that they'd co-sign, they're probably good enough friends to keep (so don't put them in that situation!!).